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What taxes are involved with a withdrawal?

April 26, 2017involved taxes withdrawal

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What taxes are involved with a withdrawal?

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You must pay income tax on any money that you withdraw (as opposed to borrow as a loan) from your account – whether it’s an early withdrawal or a normal distribution in retirement. Because qualified retirement plans are designed to help you save for retirement, if you take an early withdrawal, the government requires that you also pay an early-withdrawal penalty for most distributions occurring before age 59 ½.